MetLife (MET) assumes post-retirement life insurance liabilities for 8,000 Avaya retirees
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MetLife, Inc. (NYSE: MET) today announced that its subsidiary Metropolitan Life Insurance Company has entered into an agreement in the first quarter of 2021 to reduce responsibility for approximately $ 190 million of Avaya’s post-retirement life insurance obligations for approximately 8,000 retirees to take over.
Using the existing plan assets, Avaya acquired through its Post Retirement Life Insurance Benefits Trusts from the Metropolitan Life Insurance Company life insurance repurchase agreements for retirees to protect eligible retirees. The buyout transaction will not change the life insurance benefits for Avaya retirees and their beneficiaries. With the transaction, Metropolitan Life Insurance Company, rather than Avaya, will be responsible for life insurance costs, benefit payments and accounting. Retirees or beneficiaries do not have to do anything. Avaya and MetLife have provided additional information to insured retirees whose benefits are paid for by the Metropolitan Life Insurance Company.
“With this transaction, we look forward to continuing our long-term relationship with Avaya and providing security to their retirees,” said Jay Wang, senior vice president and head of Risk Solutions for MetLife’s Retirement & Income Solutions division. “MetLife is a leader in providing life insurance and buyout solutions for retirees. By assuming these retiree life insurance obligations, we will help Avaya reduce its financial liabilities while ensuring these benefits for retirees and beneficiaries. “
MetLife has provided retirement life insurance financing solutions through its subsidiary Metropolitan Life Insurance Company for more than 60 years and is a market leader in retirement and benefits solutions.
Avaya was advised on the transaction by the SageView Advisory Group.